At the beginning of 2019, while I was dealing with Crypto for 10 months, I wanted to set some clear goals for myself with regard to personal finance and I figured out it was still 111 Months until I would reach the milestone age of 55 years old.
So it was time to put a target in place and check the progress. The target is very clear, Early retirement when the 111 months have expired. To make this happen, I decided to focus on three things:
- Eliminate all loans;
- Build a balanced portfolio of liquid assets;
- Create assets that generate passive income;
I created a wealth building plan to achieve a liquid wealth with the equivalent of 1,5 million USD, consisting of Private Pension, Shares Cryptocurrency. The wealth building plan assumes progressive compound interest:
On top of this, the passive income generated by the liquid assets should reach the level of passive income, which is 1,5 the current monthly spend on daily expenses, excluding loan repayments and wealth building as for both I would assume to have met my target by then. This passive income should be enough to live a relaxed life for me and my family.
Month by month I am keeping track and after seven month, even with the big dip in the Altcoin market value occurring in July, I am still ahead of the progressive plan, both from wealth and passive income point of view:
The impact of loans (negative wealth) has reached 42% of total wealth and is slowly loosing importance, as I started out with loans being half of my wealth, meaning actually having a 0 liquid wealth. The value of the house, I consider non liquid and therefore is not taken into consideration.
In this process, the big unpredictable factor is the value of Cryptocurrencies as its volatility can swing the status from good to bad or vica versa in some days. This is why maintaining a healthy stock portfolio and building up a private pension fund besides the state pension are area's which need to remain in focus.
The monthly passive income from first of July to first of August has dropped as the majority of passive income is generated by CITYUPTAKE returns. These returns have been impacted by the decreased value of $TRX in July.
Let's keep on building!